Federal Reserve Vice-Chair for Supervision Michael S. Barr testified before a U.S. Senate Banking Committee on Tuesday that the regulator’s “supervisors began highlighting these deficiencies at (SVB) on interest rate risk management and liquidity risk management in a serious way in November of 2021 as far as I know — so a little more than a year prior to that (Barr first learning of deficiencies in February 2023). They intensified that supervisory review as part of its full-scope exam in the summer of 2022 when the firm was downgraded for deficiencies in its risk management practices. And they brought those risk management issues, according to the record, to the CFO of the firm in October and issued additional findings in November of 2022,” Barr said.
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